ABSTRACT
It was further urged at this meeting of the Committee: (i) that the expansion of the quantity of money in circulation in the creditor countries in the manner recommended would promote investment and thereby promote the circulation of the present immobile stocks of gold in certain countries, facilitate the infl ow of money into the debtor countries, and tend to overcome the foreign exchange diffi culties of the debtor countries in the obtaining of currencies of creditor countries for the purpose of making necessary payments to them; (ii) that the putting into effect of the measures in question by all the creditor countries simultaneously would reduce to manageable proportions any question of excessive loss of gold by one or more of the creditor countries, which would arise in the case of excessive expansion of credit in one or more creditor countries in relation to the expansion of credit in the others; (iii) that the raising of the price-level to the 1926-1929 average level would revive industry and trade as well as reduce the commodity value of debts enough to render them liquidable; and (iv) that, at all events, it would be better business for the creditor countries to extend credit and purchasing power to their own solvent people, than for them to extend, willingly or unwillingly, long or short term credits to debtor countries whose solvency-so far as international payments to the creditor countries were concerned-was questionable at the existing price-level.
